When the government sets a maximum price that can be charged for a good or service, it creates
A) a price support.
B) a price floor.
C) a white market.
D) a price ceiling.
Answer: D
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An export is any good that is:
A) rationed and licensed by the government. B) produced and consumed domestically. C) produced by public-sector firms. D) produced domestically, but sold abroad.
A risk premium is
a. the difference between the earnings of a low risk asset and a high risk asset b. premium paid to a security holder to compensate him for bearing a higher risk c. both A&B d. none of the above
Within the AD/AS model, if consumers and investors become more optimistic about the future direction of the economy,
a. aggregate demand will decrease. b. aggregate demand will increase. c. long-run aggregate supply will increase. d. long-run aggregate supply will decrease.
A private good is characterized by excludability and depletability.
Answer the following statement true (T) or false (F)